An article published by CNBC titled, “Yelp data shows 60% of business closures due to the coronavirus pandemic are now permanent” describes the impact Covid has had on small businesses. In total, 97,966 businesses in the US have permanently closed.
Looking towards the future, the closure of small businesses remains one of the most important post pandemic questions. Small businesses account for 44% of economic activity and are key employers for the general population.
Unlike public companies, there is no common measurement of the overall health of private businesses. Where the S & P 500 and stock prices are accurate measurements allowing for immediate feedback on the health of public companies, little more than bank loan data can measure the health of private businesses.
These closures will be an unfortunate development as it leaves room for public companies to seep their talons further into our daily lives. With the closing of local restaurants, gear up for the infiltration of Chilis and Applebees.
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